The Influence of Financial Leverage and Firm Size on the Company Value: A Study on Telecomunication Company BEI Listed in 2014-2018

摘要

Financial leverage, firm size, and profitability are some of the components that affect the company's value. The objectives of this research is to know the influence of financial leverage, firm size, and profitability of the company's value; to know the influence of financial leverage and firm size toward profitability. The research sample is a telecommunications company that lists in IDX of 2013-2018, the analytical techniques used are path analysis. Based on the results of the analysis, it shows that the components of the financial leverages consisting of DER (debt Equity ratio) affect the company's value, while the TIE (Time interest Ratio) does not affect the value of the company. Variable size companies demonstrate an influence on the company's value, as well as the whole component of the financial leverage affects profitability. Meanwhile, variable of firm size also affect profitability. The profitability variable affects the value of the company directly as well.